A record number of Hamilton homes were put on the market last month, which could take the edge of the city’s rising property prices.
According to the Real Estate Institute of New Zealand, Hamilton’s median selling price increased by 13% in the year to September, from $375,000 in September 2014 to $425,000 last month. The number of sales more than doubled over the same period, with 463 Hamilton homes being sold last month compared to 229 in September last year. The REINZ said much of increased demand for homes in the Waikato was coming from Auckland-based investors.
However Jeremy O’Rourke, the managing director of Waikato real estate agency Lodge Realty, warned that a surge of new listings coming on to the market and a large number of new homes being completed would likely moderate rising prices.
“During September 499 homes were listed on Realestate.co.nz for the Hamilton market,” O’Rourke said.
“Never before has the local market seen such high numbers of residential properties come on to the market in a single month.
“This is the most monthly listings since we started taking stock.
“The highest listings per month prior to September 2015 was November 2013 with 453 listings.”
There were also a lot of new homes being completed, he said.
“We saw a record number of building consents lodged in May this year,” he said.
“Those homes are ready for homeowners to move into, which means the houses they are moving out of are now on the market.”
November was traditionally the biggest month for new listings in the city and O’Rourke said indications so far were that last month’s record number of new listings was likely to be eclipsed in the next month or so.
And he warned that the surge in supply would affect prices, and auction clearance rates in the city were already falling as fewer homes sold under the hammer.
“With more stock coming on to the market, there is less pressure on prices,” he said.
He also cautioned vendors against being too greedy with their price expectations.
“It’s simple economics of supply and demand,” he said.
“If buyers have more stock to choose from, they won’t make buying decisions as quickly.
“There is a lot more quality stock on the market, so vendors need to keep their price expectations within reach of buyers if they want to sell in a reasonable timeframe,” he said.